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Exercise 12-9 Special Order Decision [L012-4] 2 Delta Company produces a single product. The cost of producing and sel ng a single unit of this

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Exercise 12-9 Special Order Decision [L012-4] 2 Delta Company produces a single product. The cost of producing and sel ng a single unit of this product at the company's normal activity level of 98.400 units per year is Direct materials Direct labor variable manufacturing overhead Fixed manufacturing overhead Variable selling and administrative expenses Fixed selling and administrative expenses 1.80 $ 4.00 0.90 $4.35 $1.30 $3.00 eBook Hint The normal selling price is $20.00 per unit. The company's capacity is 132.000 units per year. An order has been received from a mail-order house for 2.800 units at a special price of $17.00 per unit. This order would not affect regular sales or the company's total fixed costs Required: 1. What is the financial advantage (disadvantage) of accepting the special order 2. As a separate matter from the special order, assume the company's inventory includes 1000 units of this product theat were produced last year and that are inferior to the current model. The units must be sold through regular channels at reduced prices. What unit cost is relevant for establishing a minimum selling price for these units? Complete this question by entering your answers in the tabs below

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